Millions of rands in Lottery money meant to construct a school in Limpopo had been spent on a home for the Commissioner of the National Lotteries Commission (NLC), Thabang Mampane.
The money for the home, in an upmarket golf property near Hartbeespoort Dam within the North West province, was channelled via Upbrand Properties, a non-public firm intently linked to the NLC’s Chief Operating Officer Phillemon Letwaba and his household.
The R3.6-million home in Pecanwood Estate is registered within the identify of the Mojakgomo Family Trust. Mampane and her husband, Solomon, are each trustees of the belief, in line with official data.
The couple and their two grownup youngsters are all beneficiaries of the belief.
The Mojakgomo Family Trust was established on 15 August 2016.
On 29 August 2016, a non-profit organisation, Simba Community Development Foundation, obtained greater than R25-million — the primary tranche of a R28.3-million grant — to rebuild Vhafamadi school, which had been gutted by hearth throughout protests the earlier 12 months.
On the identical day, Simba paid R4-million to Upbrand Properties. Before the deposit by the NLC, Simba had a stability of solely R225.73 in its checking account.
At the time, Johannes Letwaba, the brother of Phillemon Letwaba, then the chief monetary officer of the NLC, was the only director of Upbrand Properties.
Before the fee from Simba, Upbrand had a stability of R100,201 in its checking account. As quickly because the money landed, Upbrand proceeded to make quite a few funds, together with R100,000 for the roof slab for Letwaba’s home within the village of Marapyane in Mpumalanga.
By 12 September the stability within the account had dropped to R3,514,821 – till it was topped up by a R500,000 deposit from Ironbridge Travelling Agency that very same day. Letwaba’s spouse, Rebotile Malomane is now a director of Ironbridge. Letwaba’s cousin was the only director on the time.
Ironbridge had earlier obtained R2-million from Simba Community Development Foundation on 29 August 2016.
The subsequent day, three separate funds – R68,600, R20,000 and R24,240 – got here into Upbrand from Mshandukani Holdings, which did among the development work on the school.
Mshandukani’s proprietor, Mashudu Shandukani, mentioned: “2016 is the year we were building Vhafamadi secondary school. Upbrand properties were the nominated civil and earthworks contractor. We paid them for the work done.”
With the account topped up, Upbrand then paid R3.6-million to Jacobs Robbertse Attorneys, the attorneys appearing within the sale of the home to Mampane. The buy value was paid in full and no mortgage bond was registered over the property.
Upbrand additionally made an extra fee of R269,848 to cowl switch and authorized prices. The home was registered within the identify of the belief on 1 December 2016.
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The funds from Simba to Upbrand, after which to Jacobs Robbertse, are mirrored in Simba and Upbrand financial institution statements, which GroundUp has seen.
Simba is headed up by Azwindini Simba, a boxing promoter with no expertise in development. The firm was dormant on the time it obtained the grant and was not compliant with statutory Department of Social Development (DSD) necessities, in line with the division’s data.
Simba provided monetary statements with its software to the NLC, however in line with a well-informed supply, it submitted an affidavit to the DSD claiming no monetary exercise through the monetary 12 months when the grant was awarded.
The monetary statements included within the NLC software are believed to be fraudulent, in line with the identical supply.
The grant of R28.3-million to Simba to rebuild Vhufamadi was really helpful to the NLC’s board by Mampane and the chairperson of the Commission’s Charities distributing company.
NLC spokesperson Ndivhuho Mafela mentioned in an emailed response to GroundUp’s questions: “The points and transactions referred to within the inquiry are presently being canvassed via an investigation the Special Investigation Unit (SIU) is conducting on the affairs of the National Lotteries Commission.
“At this stage, the NLC will not be commenting on media inquiries that require details of grants awarded between 2014 and 2020 as well as related transactions. This is to allow the SIU to conduct this investigation without any hindrance or prejudice.”
Mampane had not responded to questions despatched by GroundUp by the point of publication.
Millions in, tens of millions out
Bank statements present how, after it obtained the primary tranche of over R25-million, Simba made three funds totalling R15-million to Shandukani Holdings, which constructed components of the brand new Vhafamadi School. But Simba additionally instantly started paying tens of millions to firms that had nothing to do with the school.
Simba had solely R225.73 in its account earlier than the NLC fee landed.
Besides the R4-million paid to Upbrand, different funds by Simba embrace:
- On 22 August Mishone Trading 11 obtained R1.5-million. Mishone is topic to a preservation order involving the acquisition of a R27-million mansion by an organization owned by former NLC board chairperson Alfred Nevhutanda. GroundUp beforehand reported that Mishone paid R9.2-million in direction of the price of the mansion, which was partially paid for by non-profit firms that obtained Lottery grants. Nevhutanda and his spouse dwell in the home. During a presentation to Parliament in March this 12 months, Special Investigating Unit head advocate Andy Mothibi mentioned investigations had recognized Mishone as a “vehicle to distribute NLC funds” to companies “directed by” members of NLC Chief Operating Officer Phillemon Letwaba’s household.
- Also on 22 August, Simba paid R160,000 to Ndavha Management, of which Collin Tshisimba is the only director. Tshisimba can also be a member of three different non revenue organisations – Make me Movement, Lethabong Old Age and Mbidzo Development Program – which collectively obtained a complete of R53-million in Lottery funding. The SIU has recognized Tshisimba as a key participant within the looting of the Lottery.
- Also on 22 August, Simba made three funds totalling R15-million to Shandukani Holdings, which constructed components of the brand new Vhafamadi School.
- On 29 August Simba paid R2-million to the Iron Bridge Travelling Agency, of which Karabo Sithole, Letwaba’s cousin was sole director on the time. Rebotile Malomane, Letwaba’s spouse, is now the only director.
Within 12 days of Simba receiving the Lottery grant, the stability in its checking account had dwindled to R2.4-million. This signifies that the acquisition value of the Mampanes’ property, in addition to the switch obligation and lawyer’s charges, was paid by Upbrand Properties, from Lottery money.
In 2018, the NLC lodged a grievance with the Press Ombudsman about GroundUp’s reporting on the Vhafamadi school venture however withdrew it earlier than it may very well be adjudicated.
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Mampane has been knowledgeable in writing by the NLC’s board that she is to face a disciplinary inquiry. Her attorneys, Maluks Attorneys, have responded to the board saying that they are going to be defending her on the inquiry.
Solly Siweya pops up once more
The R100 price paid to the Master’s Office to register the Mampanes’ Mojakgomo Family Trust was paid by the Malwandla Siweya Family Trust on 12 August 2016.
Malwandla “Solly” Siweya is concerned with non-profit firms which have obtained tens of tens of millions of rands in Lottery grants. Lulamisa Community Development, a dormant non-profit organisation, obtained R80-million for a sport-related venture.
Both the NLC and Lulamisa have beforehand refused to say what the money was for and the way it was spent.
Lulamisa and Siweya additionally featured in a R25-million grant to the South African Sports Association for the Intellectually Impaired (SASA-II), a sports activities physique for intellectually impaired athletes, to host a Bloemfontein occasion. How the money was spent shouldn’t be clear.
Siweya was additionally the intermediary within the buy of a luxurious home in Bryanston, in Johannesburg, by Upbrand Properties. Then Sports Minister Fikile Mbalula and his spouse initially made a suggestion to buy the home, however then withdrew. The deal went forward with precisely the identical phrases and value, however with Upbrand as the customer.
And Siweya helped organize a vacation for Mbalula, then Minister of Sport, and his household in Dubai in December 2016, in line with a report by Public Protector Busisiwe Mkhwebane. Mkhwebane discovered that Mbalula had violated the Executive Ethics Code.
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Following the money
- On 17 August 2016, the NLC paid R25,089,836 to Simba Community Development;
- On 29 August 2016, Simba Community Development paid R4-million to Upbrand Properties;
- On 11 September 2016 the Mojakgomo Family Trust signed a suggestion to buy the home in Pecanwood Estate for R3.6-million;
- On 16 September 2016, Upbrand Property made two EFT funds of R3.6-million and R269,848 with Htb0027 because the reference. Two sources have confirmed that the references referred to funds to Jacobs Robbertse Attorneys.
- On 7 November 2016, Jacobs Robbertse paid a switch obligation of R233,500 to SARS;
- The switch was registered on 1 December 2016.
Lottery money used for luxurious properties
The buy of Thabang Mampane’s home shouldn’t be the one instance of how Lottery money was used to purchase or construct luxurious properties.
Apart from former National Lotteries Commission board chair Alfred Nevhutanda, over whose luxurious home the SIU has been granted a preservation order, different NLC bigwigs have managed to siphon off money for residences.
GroundUp revealed early final 12 months how one other Lottery grantee paid R5-million in direction of a luxurious home on a sprawling property in North West Province, which was bought by an organization belonging to former NLC board member William Huma.
Leaked Upbrand Property financial institution statements have proven how money has been funnelled from a number of non-profit organisations into Upbrand Properties to finance a few of these purchases.
These embrace deposits of over R5.6-million by the Southern African Youth Movement (SAYM), which obtained over R51-million in Lottery grants for a wide range of tasks. An previous age home and a drug rehabilitation centre that SAYM obtained funding to construct are but to be accomplished.
Another Lottery-funded previous age home in KwaZulu-Natal, which can also be but to be accomplished, made deposits totalling over R3.85-million into Upbrand’s FNB account.
And virtually R300,000 was deposited by Mushumo Ushavha Zwana, a hijacked non-profit organisation that has obtained R26-million to construct an previous age home in Limpopo. The website has been deserted.
The financial institution statements additionally revealed how Upbrand, in flip, contributed in direction of a luxurious home Letwaba inbuilt his home village of Marapyane in Mpumalanga. A Lottery-funded previous age home a kilometre from Letwaba’s home remains to be unfinished.
And Lottery funds additionally helped pay for a luxurious home for dodgy lawyer and Lottopreneur Leslie Ramulifho.
This article first appeared on GroundUp and was republished with permission. Read the unique article here.
